Amid the pinnacle of the cryptocurrency trading insanity, when significant trades shut their ways to new customers with an end goal to adapt, it was quite normal to see individuals offering enormous amounts to purchase existing user accounts. The accompanying case should fill in as a notice to anybody considering selling accounts, as one can never realize what legitimate issues may emerge.
On Tuesday it was revealed by the Japanese police that a Chinese citizen in Tokyo has been arrested for reportedly selling customer accounts, on cryptocurrency exchanges he created, to a group of hackers and criminals. According to reports, the man has been identified as Lin Xiaolin and is said to be a 30 years old corporate executive residing in the Japanese capital city.
As per reports from China, they reveal that the individual was arrested on March 15, 2018. He supposedly opened the accounts at a cryptocurrency exchange in Tokyo by accessing its server from his native country using the alias of a Vietnamese citizen. However, The Chinese individual has denied any of these allegations.
The police reported that as soon as Lin opened an account, he quickly sold it off to a criminal group for almost 100,000 yen (less than $1,000). Nearly half a dozen cryptocurrency exchanges accounts were opened by him, with at least three of the accounts being used for illegal transactions later, as per the reports from the Tokyo police.
The Japanese police suspect that the criminal group deposited cryptocurrency taken from a third party to the accounts they brought from Lin, which is clearly against the law. The investigators also believe that he may have provided the criminals not just accounts but various other “tools” they could utilize.
The police revealed that The Chinese executive reportedly obtained the personal details of a Vietnamese individual from an acquaintance he had in Vietnam. They spoke on the social media platform Facebook and Lin made a payment of 30,000 yen (less than $300) to get the name, birth date and more details of another individual. Lin then used these details to open an exchange account in the early stages of July 2017.
Four Vietnamese were also, arrested by the investigators back in February for allegedly selling this information to Lin, but due to lack of evidence prosecutors gradually decided against charging them.